How I Use the Dollar Cycle to my Advantage

Published on
August 3rd, 2018
Duration
7 minutes

Comments

  • KN
    Kapilan N.
    6 August 2018 @ 14:42
    Can someone please give me a brief intuition on how persistent current account deficit/ capital account surplus leads to supply of dollars?
    • CY
      C Y.
      6 September 2018 @ 15:57
      It's just math. A current account deficit simply means that foreigners are receiving dollars in return for selling merchandise. There is a net flow of dollars out of the US into foreign markets. As noted investment vehicles can serve the same mechanism but by definition that is "hot money" that can come back to the US in an instant.